According to the prospectus on this Exchange-Traded Fund, "....any gain recognized by an individual US Shareholder attributable to a sale of Shares held for more than one year,.....generally will be taxed at a maximum rate of 28%." Presumably, this is because gold, silver, etc are treated as collectibles by the IRS. So, in the course of many different sales of mutual funds on a brokerage form 1099B, is it up to the preparer to review and isolate anything which would come under this rule and code it separately as a 28% sale? It is not so-broken down on the summary page of the 1099B which reports gross proceeds. Nor on any other sheet attached which details the sales. This sale may be obvious, but you would have to be knowledable of CUSIP symbols in some cases, which may be the only thing shown on the on-line, downloaded 1099B or gain/loss statement. Another due diligence requirement of the preparer? What about the financial advisor who often furnishes the client with their own gain/loss summaries? I am looking at one right now, and sales of this fund are both short-term and long-term, with no notation that any of it is 28%-gain trades.
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You're lucky if they provide you with the gain/loss/basis information. The last time I looked at that particular fund, they pay the fund's expenses by selling a small amount of the shareholder's gold on a monthly basis (unlike the typical mutual fund that takes their fees out of the fund's gross revenue before allocating it to shareholders). Someone who invests $1000 with the intent of just holding onto it will still have twelve sales per year.
I can't imagine recognizing anything from CUSIPs. I just recognize the ticker symbol GLD, as it's fairly mnemonic. -
That's true. Apparently however, according to the same prospectus, they can deduct these expenses attributable to the Trust as a misc itemized ded subj to 2%. These sales, included in the 1099B gross proceeds, were also shown as investment expense elsewhere on the 2010 1099.
PS: I misspoke when I said CUSIP's. I meant stock ticker symbols.Last edited by Burke; 06-03-2011, 03:09 PM.Comment
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